Frasers Centrepoint Trust Changi City PointFrasers Centrepoint Trust's Changi City Point acquisition is complete.

Singapore-listed retail REIT Frasers Centrepoint Trust (FCT) (SGX:J69U) has raised gross proceeds of SGD161.5 million (USD128.7 million) from the private placement of 88 million new units at an issue price of SGD1.835.

The placement, which saw strong demand from European and Asian institutional investors, was done to partly fund the acquisition of Changi City Point.

FCT is acquiring the shopping mall, located near the Changing Business Park, for SGD305 million.

Wholly owned subsidiary of Frasers Centrepoint Limited, FCL Holdings, has undertaken to subscribe 36.1 million units while the remaining tranche saw an oversubscription rate of more than four times from new and existing institutional unit holders.

The issue price represents a discount of 2.5% to FCT's adjusted volume weighted average price of SGD1.882 per unit for trades done on the full market day of 29 May.

REITsWeek reported on 13 May that FCT expects to see a 14.7% rise in net property income (NPI) with the acquisition of Changi City Point.

Units of FCT start the trading day at SGD1.90 on the Singapore Exchange.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.